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W.W. Grainger Inc GWW

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Grainger Reports Excellent Second-Quarter Revenue Growth but Profit Margin Headwinds Emerge

Analyst Note

| Brian Bernard, CFA, CPA |

Grainger's top line expanded nicely during its second quarter, with organic daily sales growing 16% year over year to $3.2 billion. Both of Grainger's segments contributed to the firm's strong growth. High-touch solutions North America reported almost a 14% increase in daily sales as demand for non-pandemic products has rebounded off 2020 lows, increasing 31% year over year in the United States. The increase in non-pandemic product sales more than offset lower pandemic-related sales as demand for cleaning supplies and personal protective equipment continue to normalize. Grainger's endless assortment segment continued its strong growth trajectory, with sales increasing 23% year over year.

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Company Profile

Business Description

W.W. Grainger distributes 1.5 million maintenance, repair, and operating products that are sourced from over 4,500 suppliers. The company serves approximately 5 million customers through its online and electronic purchasing platforms, vending machines, catalog distribution, and network of over 400 global branches. In recent years, Grainger has invested in its e-commerce capabilities and is the 11th-largest e-retailer in North America.

Contact
100 Grainger Parkway
Lake Forest, IL, 60045-5201
T +1 847 535-1000
Sector Industrials
Industry Industrial Distribution
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 23,100

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